The effects of the memorandum of understanding in the Local Health Units: the case of the Local Health Unit of Castelo Branco

Abstract

Objective: To verify that the Memorandum of Understanding (MuO), imposed on Portugal in the period of crisis by the International Monetary Fund, the European Central Bank and the European Commission, generated an improvement in the efficiency results in the Health area. Methods: To evaluate the results of efficiency carried out a case study in the hospital clinical services Local Health Unit Castelo Branco (ULSCB), located in one of the areas with more economic constraints. Resorted to the technique of Data Envelopment Analysis, considering as input costs and as a result the recor[1]ded production of each clinical service in three time periods before (2002-2010) during (2011-2014) and after the crisis (2015-2017). The data relating to cost and production were provided by the Office of Support and the Hospital Accountability Office. In addition to the quantitative analysis, the qualitative method of content analysis of the semi-structured interviews was used, to the directors and administrators of the hospital, which allowed the evaluation of the information that it holds and which is the result of its training and experience. Results: During the period of austerity and execution of the MoU, the hospital unit under study obtained a technical efficiency average of 0.84, which meant an increase of 16% over the previous period. In particular, only one clinical service has failed to record this improvement in its technical efficiency. In the qualitative analysis of the study, most interviewees felt that austerity had a negative impact on the efficiency of their departments and their hospital, which is not confirmed by the results obtained. Conclusions: The Memorandum of Understanding not only increased technical efficiency but also promoted innovative measures that allowed for increased gains in subsequent years.